Two Trades For $2k

Posted by on Sep 25, 2015 in Blog

Two Trades For $2k

TGIF. Two trades for $2000.

The first trade occurred in the ES. The set up was a trapped trader reversal. Even though the amount that was trapped was relatively small, the way the market couldn’t follow through on its buying imbalances was a sign the buying had dried up.

9-25 es comment

I got short at 1945.75, which was actually a good fill as I went in trying to sell 1945.50s but the market got bid as my order was going in and I got a better fill. I immediately put in my take profit level at 1940.75. Going for 5 points.

Initially the market traded between 1945.00 and 1946.75. At worst the market was 1 point against me. If the market were to trade up to 1948.00 I would get out. That is my worst case, the wheels fall off the bus type of stop. After the initial back and forth the market then went in my favour and never went back above my entry level.

The market then went into a small range between 1942 and 1945.00 before finally pushing below 1942.00 and filling me at 1940.75.

A quick $1250 to start the day before the cash open.

The second trade was in the ZB. This trade kind of troubled me as the market went up to my profit target but didn’t fill me and then sold off to -5 before turning around and going back up to my target at +5.

9-25 zb comment

I got long at 155-20. The entry wasn’t the best. Originally I tried 155-18 which I missed in flight. Meaning the market was offered there and I tried to buy it but then moved away from me. By the time I got my order in the market was trading 155-20’s, 155-21’s and 155-22’s. So I decided to bump up my bid to 155-20. A few minutes later I got filled at 155-20. The market then traded up to my target of 155-25 but on small volume and I wasn’t filled.

My stop was at 155-14. Risk was 6 ticks based on my adjusted entry at 155-20. If I stayed at 155-18 then it would have been just 4 ticks. When the market was trading 155-23 I looked like a genius for moving my bid up to 155-20, but then the market sold off to 155-15 and I was feeling like a goat. It was 1 tick away from my stop at 155-14. One thing that I did notice which gave me confidence to stay in the trade was there was a big buyer at 155-16 pretty much buying whatever people wanted to sell. The market then went back up to my entry level at 155-20.

At this time the ES was looking a little weak. When the ES is weak you can get a pop in the ZB. Back to the ZB, the market started to grind higher and filled me at 155-25 for a nice tidy profit of $781.25.

Both of these trades I found using Orderflows Trader software that I developed to read the order flow.

To sum up, 2 trades, 10 lots total for a profit of about $2000 less commission.

How was your trading today?